Intermediation Process and the Allocation of Resources

Intermediation Process and the Allocation of ResourcesThe importance of the monetary brass in facilitating economic development cannot be overstated. Banks and round early(a) pecuniary institutions hit a key role in the efficient exclusivelyocation of resources and as such, sound fiscal systems argon systemically important to the economic viability of a country.The Asian fiscal crisis of 1997-98 brought home the significance of financial sector soundness by utmostlighting the consequences of underlying weaknesses in the financial sector and the negative impact that weak financial sectors could relieve oneself on stakeholders, particularly the depositors. Sound financial system is therefore not lonesome(prenominal) important for the welf atomic number 18 of the financial entities themselves, but it is overly of vital importance to the growth of individual economies.In allocating resources in an economy, financial institutions must assess competing demands for bills and p rioritize the analysis of venture. Improper decisions about financing activities, that is, which activities to finance and which not to finance, (depending on which activities lead bring the best risk of exposureiness of infection-adjusted return), can pass water a all important(p) negative long-term impact on economic prospects. Sound investment decisions ar vital ingredients in fostering economic growth and development. These decisions therefore should piddle feasible outcomes not only for the financial mediator but as well as for the economy. Investment should be for productive purposes and should be deployed for the third estate goodness.Financial intermediaries should overly have a harmonious kind with the macro-economic space indoors which they operate. For example, in the nineteenth century, Britain was seen as the most successful economy and was the home to the worlds most successful financial centre at the time. This was not only due to the detail that Londo n had developed expertise in assessing risk and in allocating financial resources efficiently, but overly to the fact that the macro economic environment was conducive to the ope proportionalityn of financial intermediaries operating in the financial centre.The assessment of risk also assists financial institutions to be individually more competitive with their peers. This results in a more efficient abut of capital allocation in addition to engendering more prudent practices. Financial intermediaries that can assess risk and allocate resources efficiently will outperform those less skilled in this regard. Effective competition should reduce borrowing cost and help to diversify financial risk within the economy. However, to ensure that banks are performing as intended, an effective regulatory modelling must exist. The importance of adequately capitalized financial institutions to underwrite appropriate risks in their portfolios cannot be over emphasised. If financial intermedia ries undertake too little risk, then potentially efficient projects may be starved of capital and if they undertake too much risk, then less efficient projects may consume capital that could be used for more executable projects. The role of regulators in providing effective oversight for the sector and be able to respond appropriately to changes in the financial environment becomes even more important.William J McDonough (1998) postulates that a nation must be able to mobilize domestic savings and other sources of funds that are needed to finance investment and other productive expenditures1. This requires the development of an effective banking system that transfers surplus funds of households and businesses to borrowers and investors. He further argues that, fair and impartial allocation of credence accommodates the economic development that results in improved national living standards.According to McDonoughfinancial intermediation is particularly important in the context of most emerging market countries given the proportional scarcity of savings, a relatively under-banked population, and large-scale investment needs. The banking sector in emerging market countries also tends to be more concentrated and represents a larger share of the domestic financial system. Consequently, issues in the banking sector have an amplified effect on the economy and on the fiscal costs associated with bank rescues.Importantly, current developments in western economies are anchored in a sturdy financial sector development.. Consequently, the relationship between economic growth and financial sector health are now more closely linked than ever before.Some of these linkages or interrelationships are further explored in this thesis from the perspective of risk relationships. The demands of the changing business environment emphasize the importance of effective risk heed practices in banking institutions. Financial intermediaries stick around to face tremendous unrelenti ng pressures regarding pricing decisions, increase in service expectations from customers, regulators and shareholders. thither is also a demand for more sophisticated products and services, upstart regulatory requirements, improved capital standards, more capital injection and the gateway of sunrise(prenominal) technologies and systems.Technology is important in supporting new and flexible risk relationship expressions in the areas of doctrine, market, liquidity and usable risk management. Advanced technologies are often used by intermediaries to identify, quantify and monitor risks. The employment of these technologies also comes with their own attendant risk exposures and as such important investments and focus have been placed (particularly in recent times) on operational risk management issues from both regulatory and financial intermediary perspectives. risk management must be seen as an integrated routine and as such managing existing relationships, developing new rel ationships and leveraging the value of all risks relationships are critical to the management of general risk exposures. It is important therefore that the approach which institutions and regulators take in managing risk, be relational. Both the qualitative and quantitative aspects of risk management must find consensus within the same modelling. No longer should institutions view risk as an isolated and individualized structure with separate and mutually exclusive elements but risk should be managed as a system, which is intricate, collaborative and bound by mutual responsibilities.Banking SupervisionThe identification, assessment, and promotion of sound risk-management practices have become central elements of good supervisory practice. seek management has evolved as a discipline that is driven both by the clubby sector (made up of banking institutions and other market participants) and public sector (especially restrictive Authorities and Banking Supervision). The relationsh ip between the private sectors gratify in economic capital and the public sectors interest in regulatory capital should be determine and managed in a framework that ensures optimization.With regard to the management of risks and risk relationships, several key innovations have been made by the private sector over the years. These are evident in the way financial intermediaries have ordered their balance sheets to respond to various risk stimuli and impulses both internally and externally. Additionally, the private sector has been the driving force behind the development of sophisticated tools used to identify, measure and manage risk relationships. The public sector on the other hand, has been at the forefront in the development of best practice standards and principles used to guide financial intermediaries. For years, the public sector has been playing a pivotal role in preventing the total better of the entire financial systems in their capacity of lender of last resort. The regulatory and supervisory arms of the public sector have taken the lead in identifying emerging issues through their approach to supervision of financial intermediaries. some(prenominal) regulatory bodies routinely performs on-site inspections and examinations as well as off-site monitoring and supervision of banks and other financial institutions to assess risks and provide feedback to the financial intermediaries board and management. These reviews include the assessment of policies and procedures in place to guide risk management the assessment of institution and internal controls and the assessment of capital adequacy, asset quality, earnings and liquidity and sensitivities to risks. Reviews could also include comparisons of peer institutions coupled with the establishment of guidelines that codify evolving practices.Yellen (2005)2 argued that although banks and bank supervisors have several(predicate) motives, which certainly can lead to differing views about the appropri ate levels of risks, they also have a common interest in having accurate measures of risk and in guidance on the processes and techniques for identifying and managing risks.According to Alan Greenspan (2004),3 the growth in the size and complexity of the largest US and foreign banking organizations, in particular, has substantially affected financial markets and supervisory and regulatory practices. He further states that regimen are required to focus more than before on the internal processes and controls of these institutions and on their ability to manage risk. According to Greenspan, the regulatory authorities must provide the industry with proper incentives to invest in risk-management systems that are necessary to compete success fully in an increasely competitive and efficient orbicular market.4The Basel FrameworksOver the last two decades, the system of bank capital standards has been the Basel Capital Adequacy Standard, known as the Basel I framework, which was establish ed internationally in 1988. The Basel I standard came out of the banking supervision sub-group of the Bank for International Settlement (BIS). The Banking subgroup is made up of supervisors from the G10 countries. This group has been charged with the responsibility for setting bank standards around the world, which it does preponderantly through the development and implementation of the Basel Core Principles for Banking Supervision. The Basel I framework was particularly geared towards credit risks in banking institutions and resulted in high capital levels, a more equitable international marketplace and the relating of regulatory capital requirements to risk appetite and risk visibleness.The Basel framework is a dynamic one to which bank as supervisors continue to make important adjustments from time to time. For example, the 1988 Capital Accord was amended subsequently to incorporate a market risk component. Bernanke (2005)5 argues that advances in risk management and the increa sing complexity of financial activities have prompted international supervisors to review the appropriateness of the regulatory capital standards under Basel I, particularly for the largest and most complex banking organizations.Bernanke states further that supervisors recognize that some of the largest and most complex banking organizations have already moved well beyond Basel I in the sophistication of their risk management and internal capital models. The jailbreak between the determinants of minimum regulatory capital (under Basel I) and the levels of risks that financial institutions were pickings on began to widen, as risk relationships continue to become more complex and risk-management practices continue to evolve.Several innovations have sought to collectively reinforce this gap and indeed the relationship (regulatory capital/risk appetite) between the public sector and the private sector has also being mutually reinforced. These innovations have predominantly being origin ated by bankers in the private sector and not by Supervisors. Bankers and Risk Managers had developed models that encompass their processes, procedures, and techniques, including statistical models for assessing risks in their portfolios. These innovations by the private sector were seen as state of the art risk management tools which the public sector could use and as such Regulators began to leverage the risk management techniques that banks were using to address shortfalls in Basel I. This phenomenon helped to push the Basel Committee back to the drawing board to create the new capital adequacy standards for internationally active banks, known as Basel II.Bernanke (2006)6 argues that the new framework links the risk taking of large banking organizations to their regulatory capital in a more significant way than does Basel I and encourages further progress in risk management. It does this by building on the risk-measurement and risk-management practices of the most sophisticated banking organizations and providing incentives for further improvements. When this framework is applied systematically crosswise internationally active banks, Supervisors can easily identify shortfalls in the relationship between banks capital and risk levels. Banking institutions with capital levels that are not satisfactory with their risk profile and risk levels would be subjected to closer assessment and monitoring. Additionally, Basel II has provided the Supervisor with an added tool, under the supervisory review process (Pillar II) to assess risks in the banking system.The new capital accord, Basel II, with its three pillars, will hopefully enhance and strengthen the process of risk management in banking institutions. Internationally active banks, and other banks and investment businesses in jurisdictions in which regulatory authorities deem it prudent to bring these institutions in place setting, should expect significant revisions and modifications in their internal polic ies used to identify, measure, manage and report on risks. Not only should improvements be seen in risk management policies, but the process and general procedural framework would also see improvements. In this regards, banks and other financial institutions should envisage changes in their system used to capture and report on risks. Under Pillar I, changes are expected I the risk w eighters designate to the credit portfolios, particularly, residential owes and as such banks could see some reduction in charges as weights for some categories are reduced. The reporting of market risks and operational risks should also improve as banks garner more granular data on its expected losses and risk exposures. In preparation for the supervisory review process (Pillar II) to be conducted by the regulatory authorities, banks should see significant improvements in their risk management practices as they subject their internal capital adequacy models to greater levels of interrogatory to ensur e that the capital cover is adequate for all the material risks identified, their risk appetite, and risk exposures.The use of stress testing on both the banks investment and credit portfolios under the pillar II process should also seek to strengthen the institutions approach to deal with adverse down turn and general deterioration in some macro economic variables in the economies in which the banks operate. This should push banks to increase capital levels to cushion expected losses.Pillar III implementation under the new capital accord should also foster greater improvements in the risk management, policies, processes, and procedures of banking institutions as banks become more transparent in their efforts to disclose more info on the profile of risks, risk exposures and capital levels to their stakeholders.The Sub-prime Mortgage CrisisThe conditions that gave rise to the current sub-prime mortgage crisis provides ample evidence to support the pressing need for both private and public sector, financial institutions and supervisors, to understand the nature and nexus of risk relationships and regulatory capital. The crisis also provide an opportunity for financial institutions and regulators to explore the risk relationships and risk kinetics existing within and outside of financial intermediaries, as well as the impact that failure to properly identify and assess risk exposures in financial institutions can have on the global financial system and economic growth and development in a particular country.The ongoing economic problem resulting from the sub-prime mortgage crisis has manifested itself through liquidity issues in the global banking system. The credit crisis has its genesis in the bursting of the US housing bubble and the subsequent high default judge on sub-prime or other adjustable rate mortgages, made to borrowers with higher risk profile and lower income levels, instead of to borrowers who are considered prime borrowers with higher income an d good credit history. Borrowers were encouraged to take up mortgages based on the attractive housing incentives that led them to believe that notwithstanding the long term trend of climb housing prices, they would be able to refinance these mortgages at more favourable terms in the future. During 2006 however, the prices of houses started to fall, albeit moderately and as such, the possibility of refinancing was becoming more remote. Consequently, the interest order on the adjustable rate mortgages (ARM) that the sub-prime borrowers were able to obtain began to reset at the higher rate resulting in a significant increase in defaults and foreclosures. In 2007, foreclosure activities increased by approximately 80 percent over the 2006 figures as nearly 1.3 million United States housing properties were subjected to foreclosure activities.Major banks and other financial institutions globally reported losses of approximately US $379 billion towards the end of the first half of 2008. T he first set of financial institutions to be impacted was mortgage lenders that retained the risk of payment default (credit risk). Several third party investors were also affected, as mortgage lenders had passed on the credit default risks arising from the rights to the mortgage payments through mortgage backed securities (MBS) and collateralized debt obligations (CDO). Individuals, institutional investors and other corporate entities holding MBS or CDO were now faced with significant losses as the value of the underlying mortgage assets declined.The sub-prime mortgage crisis also exposed financial institutions to liquidity risks as lenders were forced to reduce lending activities or grant loans at higher interest rates. The higher interest rate loans restricted the ability of corporations to obtain funds through the issuance of commercial motif, thereby posing liquidity challenges for several institutions. As a result, central banks, in their role of lenders of last resort, were forced to take action to provide funds to the banking sector so as to stimulate the commercial authorship market and to encourage the resumption of lending to borrowers with good credit profile.The rate at which economies grew was also impacted by the credit crisis as business investments and consumer disbursal were curtailed due to the general unavailability of loans or the high cost of loans in cases where it was available. The United States government responded by cutting the federal reserve interest rates as well as proposing its economic stimulus package which was passed by congress in February 2008. This was necessary to alter the risk exposure to the broader economy brought on by the credit crisis and the related downturn in the housing market.Research Problem and HypothesisWhile the benefits of risk management and positive risk relationships have been increasingly recognized in financial sectors worldwide, this study postulates that (i) risk relationships have not been suf ficiently explored in the region and current risk management practices in the Caribbean have not kept pace with international trends on financial risk management and (ii) levels of capital being held by financial intermediaries in the Caribbean could be deemed inadequate to extenuate risk exposures. It could also be argued that where there are high levels of risk exposures in financial intermediaries in the region, the impact of risk mitigating factors are low and risk management policies, processes and procedures are less than robust. Additionally, risk exposures and regulatory capital might vary according to core business activities, risk categories or geographic location.In recognition of the existence of these relational gaps and the need to bridge them, this study will introduce principles, procedures, approaches, models and concepts in risk management, and concentrate on those risks entire in the financial intermediaries balance sheet or risks associated with various element s of financial activities and environment. The writer will analyse the risk profile of financial intermediaries and their exposure to credit risks, funding/liquidity risks, interest rate risks and operational risk.The study also seeks to develop benchmarks for measuring risks in the region as well as a risk management scoring model with particular emphasis on the risk profile of Caribbean financial intermediaries.Sub-problemsThe first sub-problem is to ascertain the risk profile and relationship evident in financial intermediaries in Jamaica, Trinidad and Barbados, as well as those which may evolve consequent to the new Basel Capital Accord, Basel II, which is scheduled to be fully implemented by 2015 across all jurisdictions. The intention is to assess the risk profile and relationship in operation as a dynamic process and the likely impact of the capital accord on relevant financial entities.The second sub-problem is, using both the relevant and existing belles-lettres concerning risks, risk relationships and risk management and observation of current techniques, to ascertain throughout the course of the study, types of risk relationships that exist in credit, liquidity, interest rate and operational risk management in financial intermediaries.The third sub-problem is to provide the financial sector with a set of sound testable ideas that are systemically desirable and consistent with the future development of risk assessment. This will be done by reviewing the analyses outlined in the first two sub-problems, generating relevant model/framework of risk assessment, comparing the model/framework with substantive situation, identifying systemically desirable changes and documenting the results for the benefit of relevant stakeholders who are capable of applying change to the banking sector in general.HypothesisThe first hypothesis is that risk exposures (credit, liquidity, interest rate and operational risks) in financial intermediaries in Jamaica are relativ ely high when compared with Trinidad and Tobago and Barbados and could exhibit parasitic tendencies. This could impair the financial intermediaries ability to identify, measure, mitigate and monitor risks due to the fact that the internal control framework could be seen as less than robust.The second hypothesis is that there will be shortfalls in capital requirements specifically as a result of the introduction of the new Basel Capital Accord and more generally after taking account of specific risks not previously considered by financial intermediaries.The third hypothesis is that the cycle of analysis, application and testing will result in the implementation of rigorously defined early warning system for modelling and scoring risks and that this system will be adaptable to change, both outside and within the environment, and extendable to additional use.Justification for the ResearchSound risk management practices, which include appropriate tools and techniques and the employment of relevant steps to assess risk exposure are at the heart of effective financial intermediation. However, some(prenominal) institutions are exposed to high levels of risks in their operations and few have put in place the relevant infrastructure to appropriately capture their risk exposures. According to the Government of Jamaica, Ministry of Finance (1998)7 the financial distress experienced in the mid nineties was in several ways due to the fact that many an(prenominal) domestic financial institutions did not have the necessary risk and financial management capabilities to carefully assess the risk. As a result, they were left holding veritable estate and other long-term assets that could not be easily disposed of to meet their short-term obligations.The Ministry highlighted the fact that banks in Jamaica tended to invest in enterprises that were outside the scope of their core business which had the following implicationThe banks entered sectors in which their management did not have the requisite skills or expertise.The banks, when lending to related parties or parties under common control either (i) made poor and biased credit decisions or (ii) invested in companies on less than arms length terms resulting in poorly(predicate) secured loans.The banks, in many instances had fund investments in non-core businesses with short-term borrowing instruments with guaranteed high interest rates. As a result, many non-core business had to contend with an unsustainable capital structure that relied heavily on high cost loans with relatively short maturities8.Many studies have highlighted the risk management practices, including techniques and tools used to identify, measure, mitigate and monitor risks in industrial countries. However, few studies (note the researcher is not aware of any at the time of preparing this thesis) have sought to understand and explain the risk exposures, risk relationships and risk management practices in financial intermediaries in th e Caribbean, particularly Trinidad and Tobago, Jamaica and Barbados.The study utilizes a novel approach to analyse risk exposures and risk relationships, which has not been evidenced in the literature generally and definitely not seen in research on risk management in the Caribbean region. The risk profile of financial intermediaries are analysed using ratio analysis and statistical techniques including the standard deviation and arithmetic mean coupled with a five-point scale response to determine risk relationships based on a biological science description. This study will document over a ten-year period, sectoral differences in risk exposure reflected in the balance sheets and income statements of commercial banks, merchant banks, boldness companies and building societies in three Caribbean countries.The results of the research will provide a sound set of ideas for the management of risks in these institutions in emerging markets. It will also provide an enduring account of risk relationships and the implications of sound risk management practices in general.Thesis Outline and MethodologyThe study examines the risk management framework in emerging markets in the Caribbean region. The focus will be limited to three jurisdictions in the Caribbean region. These are Jamaica, Trinidad Tobago and Barbados. This paper takes account of four types of deposit taking financial institutions Commercial Banks, Trust Merchant Banks, Finance Companies and Building Societies. There are 8 financial intermediaries across the three jurisdictions.Elite interviews were also conducted with old management in sixteen (16) financial institutions in Trinidad and Barbados. Interviews were held with select senior management executives in the financial institutions. Among the executives interviewed were CEOs, Senior Vice Presidents, Risk Managers, Credit Managers, operations Managers and Treasury Managers. In Jamaica, detailed surveillance were done of all the in scope financial in stitutions ie, commercial banks, trust and merchant banks and building societies. Reviews of annual reports and websites of all the financial intermediaries captured in the scope of the thesis were also done. The purpose of the review of the elite interviews and qualitative reviews of the websites, annual reports and other published data was to obtain training on four risk categories, particularly on the policies, procedures and processes in place to manage risk.Twenty risk proxies were used to calibrate risk exposure across four risk types in the financial intermediaries and the countries. These risk proxies were further reduced to eight based on their relative weights and significance as a risk-sensitive measure. Additionally, eight macro-economic variables were used to assess the economic environment within each country as well as to determine the extent to which these macro-economic variables were correlated with the risk proxies. use a Likert-type index, correlation analysis a nd the results of the observation and interviews, the study developed risk benchmarks and risk scores, which were later used to determine risk relationships within financial intermediaries as well as within each country. The aim was to identify the risk relationships and to provide the managers of financial institutions and policy makers with an early warning system to calibrate and mitigate risks.The study analyzed the degree to which three major economies in the Caribbean region were exposed to credit, liquidity, interest rate and operational risks and the extent to which different countries are uniform or different in light of these risk exposures.The paper sought to determine the level of risk exposures across four different financial intermediary types in three Caribbean jurisdictions. It expounded on differences and similarities in the risk profile of financial intermediaries and sought to determine which intermediaries are likely to have higher risk profiles.The paper also e xplored synergies and alliances between the four main categories of risk under study. These are credit, interest rate, liquidity and operational risk. It disaggregated proxies for risks based on risk types and highlighted risks drivers that are significant to different intermediary types or country.Lastly, the paper explored relationship between the critical elements and proposed a model for the scoring of risks. The relational perspective to risk management envisaged risk within three basic constructs namely, Symbiotic, Parasitic and Saprophytic as well as the nexus between these constructs and the internal control framework as measurable by financial intermediaries policies, procedures and processes used to manage risks.The Saprophytic ConstructAt this level, risk is calibrated as being relatively low. Risks outcome are systemically sweet and financial intermediaries are making meaningful contribution to the common good. Risks and reward can thrive within a conducive macro envir onment and the profile of institutions balance sheet and income statement contributes positively to the risk calibration outcome. A low level of risk exposure is usually attributed to a very robust internal control framework and more effective risk mitigation strategies.The Symbiotic ConstructWithin the Symbiotic construct, risk relationships are generally balanced. Risk is calibrated as moderate and the regulatory interest and the economic interest are neutral. Risk management is generally integrated and there is usually a connection between the process of risk identification, measurement, mitigation and monitoring. The profile of intermediaries balance sheets and income statements are viewed as risk-neutral relative to risk outcome and the internal control framework and risk mitigation strategies used by financial intermediaries are generally adequate.The Parasitic ConstructWithin this construct risks are calibrated as high or very high. There is usually adverse macro-economic con dition in existence and there is disconnect between the regulatory interest and the economic interest. There is a general state of disharmony in the qualitative and quantitative approaches and disunity in the way that risk is generally managed. The risk profile of institutions balance sheets and income statements negatively impacts risk calibration outcomes. A hig

Cultures And The Globalization Of Mcdonalds Cultural Studies Essay

Cultures And The Globalization Of Mcdonalds Cultural Studies EssayIn this essay I aim to develop a better infrastanding of globalisation through studying something vital to globalizationMcDonaldization. I am instructioning on a McDonald s in Bradford in the United Kingdom and the categories of heap who frequent it and why they go at that place. Meanwhile, I will contrast the McDonald s in Bradford with McDonald s in chinaware on the basis of questionnaires, observation, communications and memory, indicating whether McDonald s in the two countries is similar or different. By highlighting on customers as head as staff nationalities and behaviours, menu, embellishment, I would advise that the influence of McDonald s as a symbol of American assimilation has been increasing throughout the sphere, and it is clear to realize that it comes under the heading of globalization. Subsequently, this study therefore gives some support to the cultural aspects of globalization including th e theory about Mcdonaldization.Description of the ethnographic study in McDonald sI went shopping in the city centre of Bradford on 13th December 2009. I was attracted by the obvious logo of McDonald s, the striking festive menu potation as well as free-wifi drawing in the transparent windows. Subsequently, I entered the eating house, as usual in chinaware in my memory and waited in the squad line as well as prepared to order. Meanwhile, I found the menu in UK roughly the same in china except for a slight disagreement. For example, McDonald s hamburger in china will non directly put the raw cheese into hamburger.The staff with a Christmas hat and the McDonald s uniform smiled at me to help me order the menu. Surprisingly, the waiting time was relatively short, the same as the McDonald s in China. Thus, I am reminded of the four elements for the success of McDonald s business systems that refer to efficiency, calculability, predictability and control.The decoration in McDonald s is warm with golden, white or mirror walls, light ivory wooden table tops, risque or deep red cushion with golden blackboard wooden chairs and upholstered armchairs in deep red colours. Contemporary art or framed photographs handing on the walls are too attractive. It is worth mentioning that in the corner, many paintings are displayed on the walls around the children playground area, especially those of McDonald s Characters such as Ronald McDonald Grimace, Ham pillager and Birdie the Early Bird. In general, the decoration of McDonald s is aimed at making the store look more(prenominal) casual and sunny, which is similar to Starbucks. Compared with McDonald s in China, the decoration style is similar, but in the children playground area, there are more facilities give care slides, wooden vaulting horses in China. Apparently the facilities are the same in Bradford and China. rotter the food serving area there are numerous technologies like automatic French fry machines an d various certain products like prosperous meal which are obtainable to the customers almost instantaneously through the carefully regulated and controlled system.With respect to people, there are several nationalities such as British, China, Pakistan, and Africa among the customers and the staff. Most people wear leisure clothes and anywhereall the colours of people s clothes are drab. It is clear that the area of age is extensive, up to eighty- year- old people, dismantle to two- aged children. Interestingly, the most frequent combination is an adult accompanied by her or his child, who plays the toy from happy meal as well as consume food. Meanwhile, McDonald s is the best choice for young people to enjoy the foods after shopping as the food is inexpensive and convenient. It is worth noting that both in Bradford and China I found people are more probable to be treated similarly in McDonald s, irrespective of their race, sex, sexual orientation, or cordial class. Accordin gly, they receive a high awareness to take the empty boxes and litters to the trash before they leave. Specifically, the staff with a smile to everyone and provide efficient goods and services to meet the customer.A brief overview of the perspectiveA summary of my chosen theory of globalization would then follow. This is such a vast topic that I would have to focus on just a small part of globalization theory. I am particularly interested in theorizing the globalization of stopping point. Accordingly, I would be considered to consider the Mcdonaldization, as one of a number of globalization processes.Ritzer 2004 puts forward the view that globalization can be in general identified as the worldwide proliferation of practices, relations and social life, meanwhile, the people tend to share a new global consciousness across continents.In terms of the theorizing the cultural aspects of globalization, Pieterse (2003) suggests that there are three major approaches divided into cultural differentialism, convergence and hybrization.More specifically, first and foremost, with regard to lasting difference, Pieterse (2003) admits that the differences in culture perspective exist among the different regions and countries. To a great extent, in this theory area, some people like Huntington (1996) believe that the people tend to persist the local culture, civilization and re master(prenominal) culturally distinct. However, Ritzer (2004) believes that compare to the radically view of Huntington, the existence of a distinct attitude is due to a clash surrounded by the developed countries like the Unites States and the developing countries like China. With the advent of an increasingly modern development once the economic develop to a certain level, the developing countries like China will seek and aline other cultures to enter the global market totally, while at the same time the developed countries tend to welcome what they provide. Therefore, in Ritzer s view, Huntingto n s tactual sensation is likely to exist on the short time.Secondly, with respect to cultural growing sameness, Ritzer (2004) points out that global assimilation is a tendency, which means to some degree the cultures of the world are regarded as growing increasingly the same. To illustrate, Ritzer (2004) also figures that cultural convergence is characterized by the appearance of Cultural imperialism , westernization, Americanization, Mcdonaldization and world culture .Last but not the least, with regard to ongoing mixing of cultures, according to the view of Pieterse (2003), hybrization emphasized on growing diversity combination of the unique mixtures of local as well as global, thereby resulting in unique phenomenon in different areas. It is important to point out that to some extent it is the same meaning of the glocalization , which has been indicated by Robertson (2001). Also, Robertson (2001) distinguished the difference between globalization and glocalization, for example, the core concepts of globalization include capitalism, Americanization and Mcdonaldization whereas the main ideas of glocalization include hybrization, creolization and heterogeneization. To put it in another way, he believes that the outcome of globalization processes in emerging is likely to be the ongoing open-ended mixing that is glocalization.Accordingly, with respect to Mcdonaldization theory, it is critical to point out that the sociologist George Ritzer (1993) coins the McDonaldization in his book The McDonaldization of Society. He describes that McDonaldization is the process by which the beliefs of the fast-food restaurant seem to play a dominant role in the increasing number of sectors of American society and the rest of the world.On the one hand, Mcdonaldization is clearly about related to a global cultural perspective as well as the influence of McDonald s and McDonaldization has a dramatic spread of the worldwide homogenization of societies. To illustrate, Bryman (2 003) along with Ram (2004) indicates that McDonaldization is not only the extension of the sameness of food products but also the proliferation of a series of business principles as well as operation systems around the world. Moreover, it is worth noting that Big Mac Index is the significant index of McDonaldization, published by a prestigious magazine, the economist. It demonstrates the purchasing capacity of respective(a) currencies in the world dependent on the local price (in dollars) of the Big Mac as an identical basket of goods and services in each country. Meanwhile, doubting Thomas (1999) in New York Times Magazine states that Big Mac Index creates the ubiquity and unique role of McDonald s around the world.On the other hand, Mcdonaldization may be considered as not only an illustration to drive the globalization process but also a major motor force in the future development of globalization. More specifically, according to the opinion of George Ritzer (2004), admittedly, a certain degree of glocalization happens with Mcdonaldization, but the majority of aspects of Mcdonaldization relate to globalization that the existence of homogeneity more than heterogeneity is related to the process of Mcdonaldization. For example, Robertson (2001) demonstrates that in glocalization theory, social processes are contingent and depend on the different geographic areas while in globalization theory, social processes are deterministic.Analysis of the McDonald s within Globalization modelAn analysis of McDonald s establish on the theory of the globalization of culture as well as Mcdonaldization would then follow. To put it another way, the central issue would be discussed that the fact of ethnographic studies and a general sociological understanding of the globalization culture as well as Mcdonaldization, which is consistent or inconsistent.In terms of differences in cultures existing among the different regions and countries are demonstrated by Pieterse (2003), whic h is the same story. To illustrate, at present McDonald s for Chinese tends to be an excellent place to have fun together in particular the students group and parents comply with children while Mcdonald s for British is likely to be a convenient and inexpensive place to deal with hungry. More specifically, Mcdonald s for Chinese children is regarded as a pleasure ground more than a fast food restaurant. Thus, different cultures lead to the different decoration designs in the children playground area, which seems to provide more facilities like the slide and the wooden horse in China.However, whether Mcdonald s American culture will be constant in the long-term as suggested by Huntington (1996) or will last for in a short-term as indicated by Ritzer (2004) is still to be proved by time. It is worth noting the third possibility of Pieterse (2003), where it is may be likely to ontogeny diversity association of the unique mixtures of local culture as well as Mcdonald s America culture and then leads to a unique phenomenon in Mcdonald s among different areas.With respect to Mcdonaldization and the influential globalizing flow, an illustration of global culture assimilation is argued by George Ritzer (2004), which is a true story.In the first place, it is universal find that McDonald s is the leading global foodservice retailer which occupies a central place in American popular culture. According to McDonald s official website, the statistics points out that McDonalds operates over 31,000 restaurants in 119 countries around the world and employs more than 1.5 million people.In the second place, in mentioning McDonald s worldwide operation system, the McDonald s staff in Bradford told me that in general McDonald s operation around the world is nearly the same because any McDonald s systems are associated with the centrally controlled system of American headquarters and every individual who is working in McDonald s knows what is expected of him based on uniform McD onald s operation and training manual. Specifically, the McDonald s staff in Bradford also told me some regulations and documents like 8 steps making a McDonalds Big Mac according to the McDonald s operation and training manual.Therefore, the situation in McDonald s for workers, customers and managers is around the same. For example, a year ago I lived in China or this year I live in England, McDonald s for me offers the best available way to get from being hungry to being full due to the similar convenience as well as efficiency both China and England. It is worth noting that it also corresponds to the theory of the dimensions of Mcdonaldization indicated by George Ritzer (2004), who claims that efficiency, predictability, calculability and control through nonhuman technology are the important elements of the McDonald s success. In other words, efficiency is principally beneficial to customers who are able to obtain what they need more quickly.As regards Mcdonaldization the core c oncepts of globalization demonstrated by Robertson (2001) during the observation, are found to be a little different. The main reason is that the local strategies of McDonald s in different countries rebound the integration of McDonald s American culture and local culture. For instance, McDonald s managers in 2008 realized that the spectacular Olympic Games would be held in Beijing began on August 8th 2008 at 080808 PM, when the people around the world would be happy with excitement and pretension. Thus, McDonalds unveiled four new Olympic-themed television advertisements developing its im lovin it brand essence with the magic and ideals of the Olympic Games to attract people in particular Chinese.On the other hand, it is worth noting that George Ritzer (2004) who admitted there are some things which reflect the features of glocalization in Mcdonald s whereas the main characteristic corresponds to the globalization and the sameness more than difference in the process of Mcdonaldiza tion in contemporary. To a great extent, it is true, that although there are some modifications based on different countries the demand for the marketing specific marketing strategies of Mcdonald s, the main business model and culture idea of Mcdonald s is constant like nonhuman technology service.ConclusionOverall, it is important to point out that the situation between McDonald s in Bradford and McDonald s in China was same similarities rather than differences, which takes into account abundant elements such as business system, nationalities, behaviour, menu and decoration based on the questionnaires, observation, communications and memory. Meanwhile, the fact of ethnographic studies and a general sociological understanding of the globalization culture as well as Mcdonaldization are likely to correspond with each other mainly.Subsequently, there are some points I am partial to reiterate as followed.First and foremost, admittedly, a comparison of McDonald s in Bradford and McDonald s in China on the basis of an ethnographic study reveals that McDonald s has become a symbol of American culture symbolize inexpensive, convenient and nonhuman technology service in people s minds with a global influence under the heading of globalization.Secondly, the situation of McDonald s and Mcdonaldization reflect the characteristics of global cultural homogeneity beyond the features of differentialism. To put it in another way, the Mcdonaldization is a type of the idea of worldwide homogeneity of societies through the influence of multinational corporations.Thirdly, in my personal perspective, the development process of McDonald s maybe considered as a process of dealing with the conflict of local culture and American McDonald s culture and assimilating each other in order to balance this paradox. Therefore, McDonald s paradox to a great extent can be considered as the rivalry between globalization and interregional in terms of cultural aspects.Last but not the least, near ly the same as Pieterse s (2003) opinion, as outlying(prenominal) as I am concerned, Mcdonald s in future may be likely to grow with diversity connection of the unique mixtures of local culture as well as Mcdonald s America culture and then create a unique phenomenon in Mcdonald s among different areas. Accordingly, the outcome of globalization processes is open-ended leading to a mixture in the future.

Efficient Market Theory and Behavioural Finance Essay -- Business, Glo

The deportment of markets and investors, the decision making in the market place and the kinetics of demand and supply in any devoted market cannot be determined with a hundred percent accuracy. However master minds in the past have designed various techniques and theories that help investors nominate a particular buying decision, or to make choices logically. These theories and techniques help todays investors to peep into the future and make al well-nigh immaculate predictions regarding the future behaviour of the market and the ongoing trends. A lay man night view the decision making of an investor as being solely based upon speculation notwithstanding in reality every move that an investor makes today in the market place is backed up by sound calculation and theories. Two of the most talked close and essential theories or concepts that are related to the market dynamics and that will be discussed at length in this assignment are effective Market Theory and Behavioural Finan ce.Efficient Market Theory suggests that in every financial market the flow of information is very efficient and this is reflected in the price of the share at which it is being traded. As we know that the price of the share floating in a market is not only qualified upon the company name printed and the information about the company in the balance sheet and other financial statements available to the public (Baghestani, H., 2009). In fact political science and political stability, inflation, interest rates, treasury bills and several more factors determine the price at which any particular share is sold or bought at. Information about all these factors is always available to every investor in the market, be it the buyer or the seller. Moreover this information is available in an effi... ...ormation regarding the dynamics of the market and if this holds sure then a financial market can never collapse. However in real world we face event like that of the 2007 global financial cri sis that decelerated the global economic progress a great deal and once prosperous economies like the US ended up finding themselves in a state of panic where the poverty rose above all the previous levels and unemployment hiked to intolerable levels. Furthermore, the interest rates in the United States fell to a indefinable 1% during this crisis leading to falling savings in its economy. Hence we can conclude that Efficient Market Theory presents a weak argument to dress market place dynamics. However if a combination of Efficient Market Theory and Behavioural Finance is utilized to predict market place dynamics then this would be defined as an efficient and effective approach.

The Education of Charles Dickens :: Biography Biographies Essays

The Education of Charles deuce In 1812, when John and Elizabeth Dickens admired their newborn, Charles, they had no idea how his pedagogicsal pursuits would lead him to immortality in the literary world. John Dickens hoped his son would grow up to be a learned and distinguished gentleman (Ackroyd 78). He passed this aspiration on to his son who kept it true to his heart. To Charles Dickens, education was the means by which he would reach this goal that had been deeply embedded in him as a child. Unfortunately, the educational offerings of early nineteenth century England were fragile and inadequate. His educational pursuits left him frustrated and unfulfilled. exclusively Dickens determination didnt let him give up his dreams. With no other alternatives available to him, he educated himself. Formal breeding began at the age of nine for Charles. His first encounter with Victorian education was at the Rome Dame School in Chatham. He and his sister, Fann y, received a typical Dame school education, which amounted to less than what Elizabeth Dickens had already taught them. His parents quickly pulled their children out of this institution and enrolled them into an institution of higher academic standards, the Clover Lane Academy. grand William Giles, a well-known teacher from Oxford, ran the Clover Lane Academy. The schools curriculum would have consisted of advanced reading, writing, calculating, and possibly Latin. Charles was an excellent student. His mentor pronounced him to be a boy of capacity (Forster 11). All references made by Dickens regarding this period in his life are positive and happy ones. Charles was finally on his way to achieving his dreams. But it was a short-lived happiness. In Victorian England, the quality of the education the children received was directly related to the family finances. After two years, John Dickens was transferred to London and Charles had to resign Clover Lane Academy. Charles hoped for a continuation of his education but poor financial decisions had put a strain on family finances. His family obligations took precedence the Dickens

Derivates in Market Essay example -- essays research papers fc

INTRODUCTION&8220A derivative instrument is like a razor, you faeces routine it to s generate and provoke yourself attractive for your girlfriend, you can slit your throat with it or you can practice it to commit suicide.&8217(Anon.) This statement describes to us the problems, and on the opposite consecrate rewards, that the proper use of derivatives can bring. The derivatives trade has developed responding to the uncertainty about prices, and therefore provided a means of separating out this price volatility. The tendency of the market to operate up or down in what appears to be a random manner has brought about the need for financial products which will protect or turn off the investor against the ill effects of market volatility. Certain types of derivatives cal lead Futures and Options might do just that if used properly. In this essay we look at certain types of derivatives called Futures and Options, and how hedgers / investors make use of them to their advantage as well as where the threats seem to lie when dealing with them in general.These derivative markets allow hedgers to avoid risk by transferring it to speculators who search it. We throw away all heard the phrase &8220keep your options open and it is along these lines that the Options derivative has arisen. As we know options are contractual arrangements giving the owner the right, but not the obligation, to cloud or sell something at a given price, at some time in the future(a). It is these Options in general that we want to address as they straits the investor the ability to create a wide variety of risk and return alternatives from the same underlying security. Futures, being exchanged-traded forward contracts, have also provided other woof to suit the needs of the holder and the advantages for and against these will also be looked at.After looking at the Futures and Options we will turn our attention to discussing the cases for and against the needs of provided adjust this market. This issue has been strongly reinforced since many big bets have gone wrong, such as the collapse of Barings and many others. Where do the faults lie which have led to these disasters and who if anybody is to blame? These are matters that will need to be looked at. To begin with lets focus our attention on Futures contracts .Advantages / Disadvantages from the use of Future Contracts- As the market for future contracts is appraise ... ...ld result in the avoidance of future disasters but more self-regulation could be encouraged and set in play also.The bottom line is that anyone in the derivative business really needs to be more careful and have more control over what they are doing. Again Partnoy in his book whipping says, &8220 Most of us enter the investment business for the same sanity- destroying reasons a woman becomes a prostitute.&8217 So if you do decide to invest you should go through the advice of the placement of Kansas Securities Commission which is &8220 Investigate before you invest.&8217BIBLIOGRAPHY- Edwards, W.H.W, Key Financial Instruments Understanding motivation in the World of Derivatives- Lewis, M, (1989), Liar&8217s Poker, Coronet Books.- Office of Kansas Securities Commission website.- Partnoy, F, (1997), drubbing declension in the water on Wall Street, Profile Books.- Piesse, J, Piesnell, K, and Ward, C, (1995), British Financial Markets and Institutions, Prentice Hall.- Pike, R, and Neale, W, (1996), Corporate Finance Investment, Prentice Hall.- Rutterford, J, (1993), Introduction to the Stock supervene upon Investment, Macmillan.- ensample handouts given out in Lectures Derivates in Market Essay example -- essays research papers fc INTRODUCTION&8220A derivative is like a razor, you can use it to shave and make yourself attractive for your girlfriend, you can slit your throat with it or you can use it to commit suicide.&8217(Anon.) This statement describes to us the problems, and on the other hand r ewards, that the proper use of derivatives can bring. The derivatives market has developed responding to the uncertainty about prices, and therefore provided a means of separating out this price volatility. The tendency of the market to move up or down in what appears to be a random manner has brought about the need for financial products which will protect or hedge the investor against the ill effects of market volatility. Certain types of derivatives called Futures and Options might do just that if used properly. In this essay we look at certain types of derivatives called Futures and Options, and how hedgers / investors make use of them to their advantage as well as where the threats seem to lie when dealing with them in general.These derivative markets allow hedgers to avoid risk by transferring it to speculators who seek it. We have all heard the phrase &8220keep your options open and it is along these lines that the Options derivative has arisen. As we know options are contrac tual arrangements giving the owner the right, but not the obligation, to buy or sell something at a given price, at some time in the future. It is these Options in general that we want to address as they offer the investor the ability to create a wide variety of risk and return alternatives from the same underlying security. Futures, being exchanged-traded forward contracts, have also provided another choice to suit the needs of the holder and the advantages for and against these will also be looked at.After looking at the Futures and Options we will turn our attention to discussing the cases for and against the needs of further regulating this market. This issue has been strongly reinforced since many big bets have gone wrong, such as the collapse of Barings and many others. Where do the faults lie which have led to these disasters and who if anybody is to blame? These are matters that will need to be looked at. To begin with lets focus our attention on Futures contracts .Advantage s / Disadvantages from the use of Future Contracts- As the market for future contracts is standardised ... ...ld result in the avoidance of future disasters but more self-regulation could be encouraged and set in play also.The bottom line is that anyone in the derivative business really needs to be more careful and have more control over what they are doing. Again Partnoy in his book FIASCO says, &8220 Most of us enter the investment business for the same sanity- destroying reasons a woman becomes a prostitute.&8217 So if you do decide to invest you should take the advice of the Office of Kansas Securities Commission which is &8220Investigate before you invest.&8217BIBLIOGRAPHY- Edwards, W.H.W, Key Financial Instruments Understanding motivation in the World of Derivatives- Lewis, M, (1989), Liar&8217s Poker, Coronet Books.- Office of Kansas Securities Commission website.- Partnoy, F, (1997), FIASCO Blood in the water on Wall Street, Profile Books.- Piesse, J, Piesnell, K, and Ward, C, (1995), British Financial Markets and Institutions, Prentice Hall.- Pike, R, and Neale, W, (1996), Corporate Finance Investment, Prentice Hall.- Rutterford, J, (1993), Introduction to the Stock Exchange Investment, Macmillan.- Specimen handouts given out in Lectures

The Significance of Chapter 34 in Jane Austens Pride and Prejudice Ess

The Significance of Chapter 34 in Jane Austens Pride and PrejudicePride And Prejudice is a 19th Century romantic novel written by JaneAusten in 1813, it presents a true representation of societysexpectations towards marriage and love at the time. It focuses on twocentral characters Miss Elizabeth Bennet and Mr Darcy and theirlove-hate relationship.Elizabeth the second eldest daughter of five sisters is an goodlywoman with a lively disposition, strong-minded determination and awoman who religiously sticks to her principles. As Mr Bennet saysdescribing his daughter, Lizzy has something more of a quicknessthen her sisters.Mr Darcy on the other hand is an extremely handsome man butunfortunately very proud and detached and his character is consideredrather aloof and disagreeable. He was the proudest virtually disagreeableman in the whole world.In Pride And Prejudice Jane Austen shows the reader how Elizabethovercomes her prejudice of Mr Darcys pride.Marriage at the time when the novel w as written was perceived veryother than to how it is thought of today. Getting married was seen asa necessity to gain financial security for the female, it was more ofan arrangement, a business proposal to benefit twain sides of theparty. Love was not a prerequisite and nor was being in love asuitable reason to get married. As in the marriage talks withElizabeth and her friend Charlotte Lucas, Charlotte sums up her viewand every other womans view on marriage. Happiness in marriage ispurely a matter of chance.The reason for this being is that subsequently a father died in the familythe house and the land were meant to go to the oldest son, or in MrsBennets case Mr Bennets cou... ...ionis the incentive for Mr Darcy to write the letter to Elizabeth to tryand change her sight of him. Did it soon make you think better ofme? Even at the end of the novel Elizabeth admits the profoundeffect that the letters had on her. She explained what its effect hadon her had been, and how step by s tep all her former prejudices had beenremoved.After the events of chapter 34 Mr Darcys character changessignificantly, because of Elizabeth he has overcome all his selfishand overbearing character traits which prevented her from loving himwhich was what he truly wanted as he was attracted to theliveliness of her mind. You taught me a lesson, hard indeed atfirst, but most advantageous. By you, I was properly humbled. Thislesson he would have never learnt or experienced if it werent for herrefusal in the proposal of Chapter 34.

Lifes Too Short :: essays research papers

Lifes Too Short     Often times when the normal get up or upstanding citizen turns on the TVand sees a young portentous man rapping ab appear the hood they are usually turned off.Stereotypes come in to play and the channel is switched without even consideringwhat message that human being is trying to convey.When listening to rapper Too Short and his cry "Gettin it", you here a band of stereotypes being defied. The song is about getting out of the hood andmaking a good life for yourself. Most of society just assumes that these youngblack rappers have no brains and no sense of purpose for life. Too Shortssong "Gettin it" tells a different story. Too Shorts successes portraythe dream that kids have growing up in the hood. Those kids dream of gettingrich at a young age and living like a true "player" for the rest of theirdays. They regard to drive around in a benz and have girls fill the whole intimacy. What these kids dont understand is t hat Too Short didnt get to wherehe is by pimping or change drugs, he got to where he is by some simplistic rulesdiscussed in his song "Gettin it".     First of all, an important ingredient to the song is how it appeals tokids. With its ghetto beat and monster bass the song is something that kidsfeel cool listening to. This is his first success ingredient, getting theattention of his audience so that they will listen to his message. His messageis of course the best thing about the song. It explains to kids to "stop justhangin out, set your self some goals, think positive, and keep hustling".Too Short has got to the financial level hes at, by following the keysthat he describes in his song, not by following the stereotypes that parentsturn off of the TV. Acting ghetto, for appeal, and rapping with a sweet rythymtongue was only the bare minimum of what he need to rise to the top of therapping industry. Studies show that the majority of successful people are notlucky, nor are they geniuses. Successful people usually follow three simplekeys that are outlined in Too Shorts song.The first key to success is the ability to take action and go out and getwhat you want out of this life. Too Short talks about this when he says, "yougot to get a good job and set your self some goals think positive, and neverstop hustling". The reality owes you nothing, you have to do the right things, or